SpiceJet signs settlement agreement with Credit Suisse, shares surge

SpiceJet Limited and Credit Suisse AG have signed and concluded the settlement and consent terms with regard to the pending dispute between the two parties, the airline said in a communication to exchanges. SpiceJet shares were up 4% at ₹51.70 on BSE. The settlement and consent terms, which was executed on May 23, 2022, has also been filed before the Supreme Court of India for final orders, the airline said.  The settlement involves payment of certain amount upfront and balance amount over a mutually agreed timeline.

SpiceJet had already provided Bank Guarantee of $5 million on the direction of the Madras High Court in the matter and there is no adverse financial liability on the company, the airline said.  

Credit Suisse had dragged SpiceJet to the Madras high court last year after the airline failed make payments of over $24 million to Swiss maintenance, repair and overhauling (MRO) service provider SR Technics. Credit Suisse was mandated to receive the pending dues on behalf of SR Technics.

The settlement with Credit Suisse follows SpiceJet’s successful settlements and performances therein with De Havilland Aircraft of Canada Limited (DHC), Boeing, CDB Aviation, BOC Aviation and Avolon and provides an impetus to normalisation, growth and expansion of the airline, it said. 

SpiceJet operates a fleet of Boeing 737s, Q‐400s & freighters and is the country’s largest regional player operating 63 daily flights under UDAN or the Regional Connectivity Scheme. 

SpiceJet will induct more Boeing 737 Max aircraft over the next few months and it hopes to start broadband internet service on its planes soon, its Chairman and Managing Director (CMD) Ajay Singh said on Monday.

Domestic airline traffic in India is recovering as travel restrictions imposed in India and other countries ease. Around 1.08 crore domestic passengers travelled by air in April, approximately 2 per cent more than 1.06 crore who flew in March, Indian aviation regulator DGCA stated on Friday.

The passenger load factors -- which means occupancy rates -- were above 78 per cent for all major Indian private carriers in April, the Directorate General of Civil Aviation (DGCA) stated in its monthly statement.

The load factors of SpiceJet, IndiGo, Vistara, Go First, Air India and AirAsia India were 85.9 per cent, 78.7 per cent, 82.9 per cent, 80.3 per cent, 79.5 per cent and 79.6 per cent, respectively, in April 2022, it mentioned.